[Fundyman]

Of course, this industry is développent to the point where I can only ask to see whether there are funders doing those things:

Do you have a funder who allows a non-owner to co-sign an advance for another merchant? In other words, the merchants business is doing great, but the credit sucks!

In that case, here comes the co-signer, w/ scores above 800! Hence, the terms of the advance can be much more appealing. I'm thinking the only way that could make sense is if such a co-signer were actually signing as a guarantor, thus putting his/her personal assets at risk in the event of unresolved default.

Now, given the nature of a merchant cash advance, it's not a personal loan. So is it possible to have a non-business owner guaranteed the loan?

If you know of a company that has such option (and for a business less than 6 months in, at that! ), or if you have a much more effective solution for a situation like this one, please PM me or email: solidmerchantsolutions@yahoo.com

[funda21]

No chance, for so many reasons I don't even know where to begin

[John Galt]

Of course, this industry is développent to the point where I can only ask to see whether there are funders doing those things:

Do you have a funder who allows a non-owner to co-sign an advance for another merchant? In other words, the merchants business is doing great, but the credit sucks!

In that case, here comes the co-signer, w/ scores above 800! Hence, the terms of the advance can be much more appealing. I'm thinking the only way that could make sense is if such a co-signer were actually signing as a guarantor, thus putting his/her personal assets at risk in the event of unresolved default.

Now, given the nature of a merchant cash advance, it's not a personal loan. So is it possible to have a non-business owner guaranteed the loan?

If you know of a company that has such option (and for a business less than 6 months in, at that! ), or if you have a much more effective solution for a situation like this one, please PM me or email: solidmerchantsolutions@yahoo.com

.
Make him an owner and officer...wait 2 months.

[John Galt]

Owner meaning majority share, give other shareholders an option to purchase their shares or interests back for $1.00. List him with the state as officer. In 2 months, most funders will allow them financing with the good credit of the new owner/shareholder/officer as guarantee.

[Steven_O]

I funded a 6 figure deal where the CFO (who had no stake in the company) cosigned and got it done. We felt more comfortable with him signing because he had a strong understanding of the business. It wasn't really a credit based decision though.

[Fundyman]

.
Make him an owner and officer...wait 2 months.

I suggested that. He won't do it for tax & payroll purposes.. It's really a very long shot. I'm just throwing it out there to see what's going on. After some of the stuff I've seen happen in the MCA space, I wouldn't put it past a funder to actually do a non-owner PG.

[Chambo]

Aint gonna happen....especially since these CASH ADVANCES are not personally guaranteed

[Fundyman]

Aint gonna happen....especially since these CASH ADVANCES are not personally guaranteed

You're absolutely right.

[ADiamond]

so what about the cash advances that are personally guaranteed? what about companies like on deck & fora that sell "loans" and credit is a huge factor? i would look down that route

otherwise like someone else said give the person 51% ownership on the operating agreement and limit his role to only having the ability to make financial decisions for the company. if that were the case and you had him on a coj as well, i dont see why you'd have a hard time getting it done.

i'm sorry, edit - limit his role to only being able to take on DEBT for the company under his name. in which case he wouldnt even have to have majority ownership which is better for the actual owner, but you would need two owners = 51%+ on the contract. i've done a few deals especially public companies where there is no single majority stakeholder but the ceo or cfo has it stated in the operating agreement they have the ability to take on debt for the company up to a certain amount.

let me know if you need help getting it done.

[Fundyman]

so what about the cash advances that are personally guaranteed? what about companies like on deck & fora that sell "loans" and credit is a huge factor? i would look down that route

otherwise like someone else said give the person 51% ownership on the operating agreement and limit his role to only having the ability to make financial decisions for the company. if that were the case and you had him on a coj as well, i dont see why you'd have a hard time getting it done.

i'm sorry, edit - limit his role to only being able to take on DEBT for the company under his name. in which case he wouldnt even have to have majority ownership which is better for the actual owner, but you would need two owners = 51%+ on the contract. i've done a few deals especially public companies where there is no single majority stakeholder but the ceo or cfo has it stated in the operating agreement they have the ability to take on debt for the company up to a certain amount.

let me know if you need help getting it done.

Very good insight, Anthony. Makes sense because there are MCAs out there requesting to personally guarantee the advance. Now, still the process of adding on such a partner would require him waiting another 2 months for the effect of what they're trying to do to take place.

[ADiamond]

Very good insight, Anthony. Makes sense because there are MCAs out there requesting to personally guarantee the advance. Now, still the process of adding on such a partner would require him waiting another 2 months for the effect of what they're trying to do to take place.

why have to wait two months? if he's on the operating agreement and it's notarized, made a signer on the bank account and he signed the MCA docs, you should be good!

[Chambo]

so what about the cash advances that are personally guaranteed? what about companies like on deck & fora that sell "loans" and credit is a huge factor? i would look down that route

otherwise like someone else said give the person 51% ownership on the operating agreement and limit his role to only having the ability to make financial decisions for the company. if that were the case and you had him on a coj as well, i dont see why you'd have a hard time getting it done.

i'm sorry, edit - limit his role to only being able to take on DEBT for the company under his name. in which case he wouldnt even have to have majority ownership which is better for the actual owner, but you would need two owners = 51%+ on the contract. i've done a few deals especially public companies where there is no single majority stakeholder but the ceo or cfo has it stated in the operating agreement they have the ability to take on debt for the company up to a certain amount.

let me know if you need help getting it done.

Chances are someone going to On Deck or FORA is strong enough that they do not need a cosignor